HIMADRI SPECIALITY CHEMICAL 2023-24 Annual Report Analysis

Wed, 29 May

HIMADRI SPECIALITY CHEMICAL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

HIMADRI SPECIALITY CHEMICAL Income Statement Analysis

• Operating income during the year rose 0.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY24 as against 8.8% in FY23.
• Depreciation charges decreased by 6.1% and finance costs decreased by 3.6% YoY, respectively.
• Other income grew by 86.7% YoY.
• Net profit for the year grew by 90.4% YoY.
• Net profit margins during the year grew from 5.2% in FY23 to 9.8% in FY24.

HIMADRI SPECIALITY CHEMICAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	41,718	41,849	0.3%
Other income	Rs m	280	522	86.7%
Total Revenues	Rs m	41,998	42,371	0.9%
Gross profit	Rs m	3,692	6,324	71.3%
Depreciation	Rs m	508	477	-6.1%
Interest	Rs m	661	637	-3.6%
Profit before tax	Rs m	2,803	5,731	104.5%
Tax	Rs m	644	1,621	151.8%
Profit after tax	Rs m	2,159	4,110	90.4%
Gross profit margin	%	8.8	15.1
Effective tax rate	%	23.0	28.3
Net profit margin	%	5.2	9.8

Don't Miss: Key Information for Long-term Investors

HIMADRI SPECIALITY CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 13 billion as compared to Rs 13 billion in FY23, thereby witnessing an decrease of -2.1%.
• Long-term debt down at Rs 215 million as compared to Rs 483 million during FY23, a fall of 55.4%.
• Current assets rose 22% and stood at Rs 24 billion, while fixed assets rose 16% and stood at Rs 24 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 48 billion as against Rs 40 billion during FY23, thereby witnessing a growth of 19%.

HIMADRI SPECIALITY CHEMICAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	21,741	29,800	37.1
Current Liabilities	Rs m	12,950	12,680	-2.1
Long-term Debt	Rs m	483	215	-55.4
Total Liabilities	Rs m	39,855	47,572	19.4
Current assets	Rs m	19,325	23,656	22.4
Fixed Assets	Rs m	20,530	23,916	16.5
Total Assets	Rs m	39,855	47,572	19.4

HIMADRI SPECIALITY CHEMICAL Cash Flow Statement Analysis

• HIMADRI SPECIALITY CHEMICAL's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 641.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 2.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 81 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 34 million from the Rs 344 million net cash flows seen during FY23.

HIMADRI SPECIALITY CHEMICAL Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	540	4,004	641.9%
Cash Flow from Investing Activities	Rs m	-3,967	-4,051	-
Cash Flow from Financing Activities	Rs m	3,771	81	-97.8%
Net Cash Flow	Rs m	344	34	-90.3%

Current Valuations for HIMADRI SPECIALITY CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an improvement from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 345.1, stands at 41.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 26.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	96.4	85.0
TTM Earnings per share	Rs	5.0	8.3
Diluted earnings per share	Rs	4.4	8.3
Price to Cash Flow	x	16.2	26.1
TTM P/E ratio	x	20.0	41.5
Price / Book Value ratio	x	1.6	4.0
Market Cap	Rs m	35,536	119,580
Dividends per share (Unadj.)	Rs	0.3	0.5

Ratio Analysis for HIMADRI SPECIALITY CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.5x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 10.0x during FY24, from 5.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 13.8% during FY24, from 9.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 21.2% during FY24, from 15.6% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.0% during FY24, from 7.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.5	1.9
Debtors’ Days	Days	442	572
Interest coverage	x	5.2	10.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.1	10.0
Return on equity	%	9.9	13.8
Return on capital employed	%	15.6	21.2

To see how HIMADRI SPECIALITY CHEMICAL has performed over the last 5 years, please visit here.

HIMADRI SPECIALITY CHEMICAL Share Price Performance

Over the last one year, HIMADRI SPECIALITY CHEMICAL share price has moved up from Rs 124.5 to Rs 345.1, registering a gain of Rs 220.6 or around 177.3%.

Overall, the S&P BSE SENSEX is up 18.7% over the year.

(To know more, check out historical annual results for HIMADRI SPECIALITY CHEMICAL and quarterly results for HIMADRI SPECIALITY CHEMICAL)